Deutsche upgrades Coke (KO) to BUY and nudges its target up $1 to $65. Three reasons cited:
- favourable currency impact [in our experience, investors don’t normally pay for this, as it’s temporary]
- international growth
- valuation [21X trailing P/E, per Yahoo Finance]
The fact that Deutsche only raised the target $1 suggests that price played the largest role here. While KO was trading in the low $60s as recent as April, the stock now hovers in the mid-$50s. At 21X trailing earnings, the stock may be relatively attractive, but it’s far from cheap.
Coca-Cola (KO) upgraded from Hold to BUY, target from $64 to $65.